Why Fixed Price Persists: The Executive Logic Behind the Oldest Commercial Model
Why organisations continue to favour lump-sum fixed-price commitments despite more flexible commercial mechanisms, and when that preference still makes sense.
Professional knowledge and strategic perspectives across strategy, projects, operations, engineering, transformation and business performance.
9 articles found
Why organisations continue to favour lump-sum fixed-price commitments despite more flexible commercial mechanisms, and when that preference still makes sense.
Why leaders should separate the delivery relationship from the pricing mechanism when designing procurement strategy, risk allocation and supplier governance.
How leaders should scale contract architecture to delivery interfaces, duration, uncertainty, consequence, operating demands and lifecycle complexity.
Why contracts can allocate responsibility without eliminating customer, operational, reputational or strategic consequences for the enterprise.
Why PPP value depends on allocating each risk to the party best able to manage it rather than transferring as much risk as possible to the private sector.
Procurement strategy sets the commercial logic; procurement planning makes it executable. Confusing the two can produce efficient activity around the wrong decision.
Why delivery risk, value and supplier outcomes are often determined during procurement planning long before a tender is released to the market.
Entering a large pursuit through procurement does not risk discounting. It guarantees it: procurement's mandate is price, and nothing else is theirs to move.
A buyer asking for a discount reports one of two failures: they hold alternatives, or they hold objections. The repairs are opposite, and confusion is costly.